End of Consolidation Phase: Crypto’s Big Move Amid US Debt Ceiling Resolution

Ethereum & Bitcoin breaking free from range-bound prices, glimmering halving cycle on the horizon, golden multicolor bullish bias dominating the scene, US debt ceiling resolution unfolding in the background, a contrasting mix of both euphoria & risk awareness, captivating light play amid the volatile crypto atmosphere, potential big moves awaiting.

Bitcoin and Ether prices have been range-bound, with BTC consolidating between $26,000 and $31,000 since mid-March. However, new research by trading firm QCP Capital predicts that the “consolidation” phase could end by July due to the US debt ceiling issue being resolved, giving way to a more bullish bias on Bitcoin and largest altcoin Ether.

The firm highlights the similarities between the price dynamics in 2023 and the start of the coronavirus pandemic in 2020. At that time, the Federal Reserve unleashed a massive $4 trillion of liquidity, buoying risk assets, and ultimately sending Bitcoin to new all-time highs. QCP Capital argues that we are now heading into the next halving cycle, suggesting that a big move could be due this month.

The research also addresses the United States debt ceiling’s vanishing sideshow, which has left Bitcoin closely mimicking its consolidation and breakout phase from 2020. The passage of the debt ceiling bill extending the ceiling until January 2025 means that political distractions will not resurface until next year’s US Presidential elections.

Some market participants argue that BTC price action is at a critical stage, with a decision on trajectory now due. On-chain metric tracking hodler behavior puts BTC/USD in a “transition” phase away from “capitulation” and heading towards “euphoria.” With an accompanying chart showing June as a hotspot for both BTC and ETH volatility since 2019, QCP Capital positions long options plays in anticipation of an upcoming big move.

However, Bitcoin has never been free from risks and uncertainties. With its ongoing environmental concerns and increasing regulatory scrutiny worldwide, it is essential for investors and traders to conduct their due diligence before placing their bets on the cryptocurrency’s long-term prospects. While the current outlook may appear to be bullish, investors should always weigh the potential risks against the potential rewards before making a decision.

In sum, as we enter the second half of 2023, a significant breakthrough in BTC and ETH prices is anticipated, following a period of consolidation that has so far played out similarly to previous market movements. Nonetheless, it is crucial for those interested in investing in cryptocurrencies to be aware of the potential risks involved and to keep an eye on market trends, developments, and sentiment before making any investment decisions.

Source: Cointelegraph

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